by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – SOUTH Africa’s National Credit Regulator (NCR) has partnered with Japan and the International Finance Corporation (IFC) to support the digitisation and regulatory compliance of small credit providers in the former.
This is through a competition- TechSprint- and a subsequent showcase event, engaging software developers and technology teams to create robust and affordable solutions for the providers.
This is ultimately anticipated to promote financial inclusion for underserved borrowers.
In the virtual TechSprint, a hackathon, taking place from October 16 to 20, tech teams will enter the competition to build a prototype solution addressing the issue at hand.
Winners will be announced on the Demo Day scheduled for October 20.
Once the winners are selected, a Solution Showcase event will take place on October 24 in which the winning tech teams will virtually present their solutions to the credit industry.
Applications for the virtual TechSprint are open until September 19.
First prize is R100 000 cash with a three-month incubation programme worth R65 000. The runners up and third places, would receive R60 000 and R40 000, respectively
“Through this initiative, we want to drive economic growth by providing essential financial services to those who would otherwise be excluded from the formal financial sector,” said NCR Chief Executive Officer, Nomsa Motshegare.
She said together with partners in this project, they had to find a solution to enhance credit visibility for borrowers, reduce the potential for over-indebtedness, provide more accurate data for regulatory purposes and lower compliance burden.
“We can’t wait to see how these Tech teams make compliance more affordable and accessible,” Motshegare said.
Small credit providers play a crucial role in the South African financial ecosystem, serving the base of the pyramid and the last mile.
However, many of these credit providers face challenges in complying with Regulation 19(13) of the National Credit Act (NCA), which prescribes how credit providers must submit credit information to a credit bureau.
– CAJ News